Trends in part-time and temporary work

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1 Trends in part-time and temporary work This analysis has been carried out using the latest available quarterly data from the Labour Force Survey. This was used to examine trends in temporary and part-time work from Q to Q4 29 to identify those in part-time and temporary work, and within this group, those who have failed to find full-time or permanent employment. These two subsets are broken down by gender, age, industry sector and occupation to track the impact of the recession. The cost of underemployment is also calculated, based on the number of those in part-time work who cannot get full-time work. Finally, comparative international evidence on the prevalence of underemployment across income deciles is presented. The findings show record numbers of part-time workers are unable to find full-time work. In Q the number of people working part-time because they can t find full-time work reached over one million for the first time. The most recent LFS data (Dec-Feb 21) puts this figure at 1,46, - the highest number on record and a 45 per cent increase since the recession began (NB this data is not used below because quarterly comparisons are unavailable). Key findings Part-time and temporary work 1. The number of people in both part-time and temporary jobs because they are unable to find full-time or permanent work has increased sharply during the recession The previous peak of part-time workers unable to find full-time work was in Q after the recession of the early 9 s. The number reached 846, and levels stayed high for several years before declining again. The current rise began in 28 Q3 to reach 1,41, in Q4 29 There has also been a substantial increase in temporary workers unable to find permanent work increasing by 4 per cent since the recession began. Note that temporary and part-time work are not mutually exclusive, so the same worker may be counted in both measures 12 People in part time and temporary jobs because they are unable to find full time or permanent work People in part time work because they could not find a permanent job People in temporary work because they could not find a full time job

2 2. The overall number of part-time workers has risen to a record high Since 1984 the number of people in part-time work has risen steadily by over half (53 per cent) to reach 7.7 million Though there has been a steady increase in part-time work since 1984, the increase over the period of the recession (Q2 28 and 29Q4) has been greater. For example the increase over the period of the recession was 2.3 per cent, whereas over the previous year the increase was 1.3 per cent 9 Total part time workers Total part time w orkers 3. The total number of temporary workers has decreased since the end of 1997 In contrast to part-time work, the number of temporary workers fell steadily between 1997Q4 and 28Q3, by 23 per cent. However, since 28Q3, a rise of 5 per cent has seen this trend reversed, mirroring the increase in involuntary temporary workers 2 18 Total temporary and part time workers ' '1 '2 '3 '4 '5 '6 '7 '8 '9 '1 Total temporary w orkers

3 Part-time and temporary work by gender 4. Numbers involuntarily in temporary employment have increased sharply among men and women, but particularly among men. The number of men in temporary jobs because they are unable to find permanent work has increased by 53 per cent, or 93, between 28Q2 and 29Q4 Though the number of women in this position also rose in the same period, the increase of 34 per cent or 58, was less severe As a result, the gap between men and women in temporary work because they could not find permanent work has widened nearly seven-fold across the period, from 6, in Q2 28 to 41, in 21Q1. Number of people in temporary work, by gender ' '1 '2 '3 '4 '5 '6 '7 '8 '9 '1 Males in temporary jobs because unable to find permanent w ork Females in temporary jobs because unable to find permanent w ork 5. Involuntary part-time employment has increased among men and women. Findings for part-time work by gender display a different trend than those for temporary work, with 27 per cent more females than males involuntarily in part-time work Between 28Q2 and 29Q4 the number of females in this situation rose by 46 per cent The proportion of males in this position rose more sharply as a proportion, by 63 per cent to 45,, but the numerical gap between men and women has remained relatively steady over the period, increasing from 13, to 141,.

4 Number of people in part-time work, by gender ' '1 '2 '3 '4 '5 '6 '7 '8 '9 '1 Males in part time jobs because unable to find full time w ork Females in part time jobs because unable to find full time w ork Part-time and temporary work by age 6. Young people are most likely to be in involuntary part-time or temporary work. Of those involuntarily in part-time work in 29Q4, nearly one in four were between 16 and 24 years old. This rises to over one in four who were involuntarily in temporary work. However young people account for just over a tenth (11 per cent) of the total workforce. This means that young people are more than twice as likely to be involuntarily in part time work as people in other age groups. Those between 16 and 24 years old are also more than twice as likely to be involuntarily in temporary work as other age groups. The average (mean) age of a full-time or permanent worker is 42. This falls to 39 for part-time employees and 36 for temporary employees. These findings closely mirror those of Q2 28, suggesting that the recession has not had a major age-based impact on part-time or temporary work. Percentage of part time and temporary workers by age (Q429) 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % Part-time Temp All w orkers

5 Part-time and temporary work by sector and occupation 7. Two sectors employ the majority of part-time and temporary workers. The public administration, education and health sector employs nearly two-fifths of temporary and part-time workers (4 per cent and 38 per cent respectively) Over one in four part time workers are employed in the distribution, hotels and restaurants sector (29 per cent), and though this sector is also a large employer of temporary staff, it accounts for fewer (under one in five, 19 per cent) of the total of temporary staff Sectors in which part-time and temporary workers are employed 45.% 4.% 35.% 3.% 25.% 2.% 15.% 1.% 5.%.% Agriculture & fishing Energy & water Manufacturing Construction Distribution, hotels & restaurants Transport & communication Banking, finance & insurance etc Public admin, educ & health Other services Part-time Temporary 8. A similar picture emerges from those in temporary and part time work because they haven t been able to find full-time or permanent work The difference between part-time work and temporary work in the distribution, hotels and restaurants sector is even more pronounced in this case: 35 per cent of involuntary part-time workers are employed in the sector, compared with 17 per cent of temporary workers Around one in eight temporary workers involuntarily in temporary work are employed in manufacturing, compared with only 3 per cent of part-time workers who have failed to find full time work.

6 4% 35% 3% 25% 2% 15% 1% 5% % Agriculture & fishing Sectors in which part-time and temporary workers unable to find full time and permanent jobs are employed (29Q4) Energy & water Manufacturing Construction Distribution, hotels & restaurants Transport & communication Banking, finance & insurance etc Public admin, educ & health Other services Part-time w orkers unable to find full time w ork Temp w orkers unable to find permanent w ork 9. Almost one in five temporary workers are employed in professional occupations, which is the single biggest sector for temporary work. Professional occupations account for 19 per cent of temporary employees, with a further 18% employed in elementary (low-skilled) occupations Part-time employees are less likely to work in professional occupations, but are similarly concentrated in elementary occupations (19.6 per cent) and customer services (16 per cent) Occupations in which part-time and temporary workers are employed 25.% 2.% 15.% 1.% 5.%.% Managers and senior officials Professional occupations Associate professional and technical Administrative and secretarial Skilled trades occupations Personal service occupations Sales and customer service occupation Process, plant and machine operatives Elementary occupations Part-time Temporary 1. Those in elementary (low-skilled) occupations have most difficulty full-time or permanent employment. Professional occupations present less difficulty for temporary employees seeking permanent work (13 per cent) than the sector s share of temporary employment suggests (19 per cent, see above)

7 Whereas 19.6 per cent of those in part time work overall are in elementary occupations, 3 per cent of those in part time work involuntarily are in these occupations. Occupations of part-time and temporary workers unable to find full time and permanent jobs (29Q4) 35% 3% 25% 2% 15% 1% 5% % Managers and senior officials Professional occupations Administrative and secretarial Associate professional and technical Skilled trades occupations Personal service occupations Part-time w orkers unable to find full time w ork Process, plant and machine operatives Sales and customer service occupation Elementary occupations Temp w orkers unable to find permanent w ork 11. Cost of underemployment based on part-time workers who have failed to get full-time work, in terms of wages. Here the costs of underemployment to part-time workers who have failed to find full-time work are calculated. These costs in terms of lost wages can be captured by calculating the weekly wage lost by someone who is in part-time employment but would like full-time work, and multiplying this by the amount of people in this position The two columns represent the same calculation, one using the average hourly wage received by someone in part-time work, and the second using the average wage of a full-time worker. The average hours lost to unemployment (2) and number underemployed (1,46,) are common to both calculations In reality, the total annual pay lost to underemployment is likely to rest somewhere between the two figures in bold ( 9bn and 14bn respectively) Part-time Full-time Average wage per hour Average hours per week 19.5h 39.5h Average hours lost to underemployment 2 Average wage per week Average weekly pay lost to underemployment (average hours lost multiplied by average wage per hour) Average annual pay lost to underemployment 8,143 12,792 Number underemployed 1,46, Total annual pay lost to underemployment 8.5bn 13.3bn Plus 5% (pension, other costs) 9bn 14bn

8 12. International evidence shows underemployment is strongly associated with low income. A US study based on data for 29Q4 calculated that over one in five workers in the lowest income households (the lowest decile) were underemployed 1, defined as working part-time for economic reasons at an average of 22.5 hours per week Less than two in each hundred workers in the highest income decile were underemployed in the same period, meaning that those earning the least are 13 times more likely to be underemployed as those earning the most 25 The incidence of underemployment amongs US workers in selected deciles of the Household Income Distribution 29Q % 1 5 Low est Second Fifth Sixth Ninth Tenth Decile of income distribution Incidence of underemployment Source: Sum et al 21 References Office for National Statistics, Labour Market Statistics, see: Sum A. and Khatiwada, I., 21, Northeastern University: Boston, MA see: 1 The International Labour Organisation (ILO) definition of underemployment includes people willing to work additional hours: meaning that they wanted another job in addition to their (current) job; wanted another job with more hours instead of their current job; or wanted to increase the total number of hours worked in their current job; were available to work additional hours within a period corresponding to the usual term of notice, given opportunities for additional work; and worked less than a specified number of hours during the reference period

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